The unofficial currency market in Cuba has ended the week with the U.S. dollar and euro reaching new heights, while the Freely Convertible Currency (MLC) remains stagnant at its lowest value over the past month. According to data released this Saturday by the independent outlet elTOQUE, the informal exchange rate has risen to 470 Cuban pesos (CUP) per U.S. dollar (USD), marking a two-point increase from the previous day.
Unprecedented Exchange Rates in Cuba
As of Saturday, October 18, 2025, the exchange rates stand at:
- USD to CUP: 470 CUP
- EUR to CUP: 525 CUP
- MLC to CUP: 200 CUP
The euro has solidified its position at 525 CUP, following a sudden five-peso jump on Friday. Meanwhile, the MLC remains at 200 CUP. These figures highlight the continued pressure on the Cuban peso, which has depreciated by more than 10% against major currencies in just a month.
Persistent Dollar Surge
Over the last four weeks, the U.S. dollar has experienced a noticeable upward trend, escalating from 420 CUP in mid-September to 470 CUP by October 18. This increase has been steady, with minor fluctuations, driven by the scarcity of official currencies, rising demand among small and medium-sized enterprises (SMEs), and widespread distrust in the national currency.
Euro’s Stability Amidst Volatility
Similarly, the euro has followed a comparable trajectory, although its growth has been more stable recently. Trading at around 480 CUP in mid-September, it now stands at 525 CUP, having breached the symbolic 500 CUP threshold earlier in the month. The European currency has emerged as the preferred store of value on the island, occasionally surpassing the dollar in terms of volatility.
Conversely, the MLC has declined from 210 CUP at the end of September to 200 CUP, hitting its lowest point since May. This drop reflects the diminishing confidence among Cubans in a state-controlled currency, which is restricted to poorly stocked stores with increasingly exorbitant prices.
Insight into Cuba’s Economic Landscape
The charts over the past month paint a clear picture: the Cuban peso is in freefall, with no visible intervention from the government or signs of stabilization. As the Central Bank remains silent on the promised currency reform, the unofficial market emerges as the true barometer of the national economy, where the value of money is determined on the streets, not in official offices.
With just two months left in the year, both analysts and the Cuban public anticipate further records before December, as the peso devalues faster than the government seems willing—or able—to acknowledge.
FAQs on Cuba’s Informal Currency Market
Why is the Cuban peso depreciating so rapidly?
The Cuban peso is rapidly depreciating due to a combination of factors including the scarcity of official foreign currencies, increased demand from SMEs, and a widespread lack of trust in the national currency.
How have the euro and dollar performed in the Cuban market?
Both the euro and dollar have seen significant gains in the Cuban market. The euro has become a preferred store of value, while the dollar has shown a continuous upward trend due to various economic pressures.
What is the current status of the MLC in Cuba?
The Freely Convertible Currency (MLC) has declined to 200 CUP, its lowest level since May, indicating a loss of confidence in this state-controlled currency.
